NBC Sports Takes Stake in Fantasy-Sports Startup FanDuel as Part of $70 Million Round

FanDuel

Fantasy-sports startup FanDuel announced that it has closed $70 million in financing from investors including NBC Sports Ventures.

The latest investment round — which brings the company to $88 million raised to date — was led by Shamrock Capital Advisors, with NBC Sports and KKR participating. Existing investors Comcast Ventures, Pentech Ventures, Bullpen Capital, Scottish Enterprise and investor Richard Koch also participated.

“This level of investment from Shamrock, NBC Sports, KKR and our existing investors is a testament to FanDuel’s leadership in the one-day fantasy sports industry and the growth potential within this space,” FanDuel CEO Nigel Eccles said in a statement.

Founded in 2009, FanDuel has partnerships with Yahoo, ESPN, CBS, NBC and the NBA’s Orlando Magic. The New York-based company touts its “one-day” fantasy-sports model in which contests can be as short as a single day, with prize money paid out immediately after the relevant games have finished. In typical fantasy-sports leagues, winners collect after an entire season ends. According to the company, it expects to pay out more than $400 million in prize money to users in 2014.

With the funding, Shamrock partner Mike LaSalle and principal Alan Resnikoff have joined FanDuel’s board. Rick Cordella, NBC Sports Group SVP and g.m. of digital media, has joined as a board observer. Mesa Global served as FanDuel’s investment bank for this round of financing.

FanDuel, which currently has 106 employees, said it will use the funds to expand its teams in New York and Edinburgh, Scotland.

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